Salil Parekh, the CEO & MD of Infosys, an IT services company, has resolved allegations of breaking the laws against insider trading and agreed to pay Rs 25 lakh for not having enough safeguards in place to stop it, the Securities and Exchange Board of India (SEBI) announced on Thursday.
The case was "recommended for settlement upon payment of Rs 25,00,000/-(Rupees Twenty Five Lakh only)" by the High Powered Advisory Committee (HPAC). On May 21, 2024, the Panel of Whole Time Members of SEBI approved the HPAC's recommendation, and on May 24, 2024, SEBI sent an email to the applicant with a Notice of Demand.
It also stated that on June 7, the "applicant," in this case Salil notified the regulator via email that the funds had been transferred on the same day and thereafter verified receipt of the same. The most recent price of Infosys shares was Rs 1,545.95, up 0.30 percent. With a market capitalization (m-cap) of Rs 6,41,862.25 crore, the counter had turnover of Rs 10.73 crore.
According to SEBI, its inquiry revealed that Infosys had broken both the 2015 PIT Regulations and the SEBI Act between June 29, 2020, and September 27, 2021. "It was discovered during the investigation process that Infosys had not regarded certain information as Unpublished Price Sensitive Information (UPSI)." Furthermore, as per SEBI, Parekh had offered to use a settlement order to end the case without acknowledging or rejecting the allegations. According to the conditions agreed upon, SEBI stated that the specific procedures have been concluded as the settlement money has been received.
